NAFTA and Dairy

Date: 15.10.2018 | Blog

http://globe2go.newspaperdirect.com/epaper/viewer.aspx?issue=18932018061400000000001001&page=25&article=cd5ab9bf-9b5c-46d0-93ef-820e288878e2&key=VCFpmR6oGuicv12jTJeXbw%3D%3D&feed=rss

Let’s consider:  Value of trade between Mexico, US and Canada $900b; between the US and Canada it is $700b with $2b surplus to the US

Of that $900b: EXPORTS Steel & Aluminum $16b Auto Sector $80b Diary $500m or 1/10 of 1% of the Canada Us two way trade.

40,000 dairy farmers in the US who enjoy US government subsidies through subsidies that equal about 73% of the farmers annual returns.  In Canada, a different system is applied where the supply is managed and controlled among producers to ensure that everyone can survive.  Different styles in 2 different countries but the US is directly and indirectly granting $22b to these 40 dairy farmers.

Given these ratio’s and the real value of trade between long standing partners, it seems obvious that a solution if the best route.

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